S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3934
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2023
                                ___________
 
 Introduced  by M. of A. FAHY, SEAWRIGHT, SIMON -- read once and referred
   to the Committee on Environmental Conservation
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   establishing  a recycling program for containers of adult-use cannabis
   sold in New York, and requiring such containers to be made of at least
   fifty percent recycled materials
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 27-1001 of the environmental conservation law, as
 amended by section 1 of part SS of chapter 59 of the laws  of  2009,  is
 amended to read as follows:
 § 27-1001. Legislative findings.
   The  legislature hereby finds that litter composed of discarded bever-
 age containers AND OTHER SINGLE USE CONTAINERS is a growing  problem  of
 state  concern and a direct threat to the health and safety of the citi-
 zens of this state. Discarded beverage containers AND OTHER  SINGLE  USE
 CONTAINERS  create  a  hazard to vehicular traffic, a source of physical
 injury to pedestrians and farm animals,  a  hazard  to  farm  and  other
 machinery and an unsightly accumulation of litter which must be disposed
 of  at  increasing  public expense. Beverage containers AND OTHER SINGLE
 USE CONTAINERS also create an unnecessary addition to  the  state's  and
 municipalities'  already  overburdened  solid  waste and refuse disposal
 systems. Unsegregated disposal of such containers creates an  impediment
 to  the  efficient  operation  of resource recovery plants. Further, the
 legislature finds that the uninhibited discard  of  beverage  containers
 AND  OTHER SINGLE USE CONTAINERS constitutes a waste of both mineral and
 energy resources. The legislature hereby finds that requiring a  deposit
 on  all  beverage  containers  AND SINGLE USE CANNABIS CONTAINERS, along
 with certain other  facilitating  measures,  will  provide  a  necessary
 incentive  for  the  economically  efficient  and environmentally benign
 collection and recycling of such containers.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04114-01-3
              

 A. 3934                             2
 
   § 2. Subdivisions 4, 5-a, 6, 7, 8, 9 and 10 of section 27-1003, subdi-
 visions 4, 7, 8 and 10 as added by chapter 200 of the laws of 1982,  and
 subdivision  5-a as added and subdivisions 6 and 9 as amended by section
 3 of part SS of chapter 59 of the laws of 2009, are  amended  and  three
 new subdivisions 2-b, 14 and 15 are added to read as follows:
   2-B.  "CANNABIS  PACKAGER"  MEANS  A  PERSON,  FIRM OR CORPORATION WHO
 BOTTLES, CANS OR OTHERWISE  PACKAGES  CANNABIS  IN  CANNABIS  CONTAINERS
 EXCEPT  THAT  IF  SUCH PACKAGING IS FOR ANY OTHER PERSON, FIRM OR CORPO-
 RATION HAVING THE RIGHT TO BOTTLE, CAN OR  OTHERWISE  PACKAGE  THE  SAME
 BRAND  OF CANNABIS, THEN SUCH OTHER PERSON, FIRM OR CORPORATION SHALL BE
 THE CANNABIS PACKAGER.
   4. "Dealer" means:
   A. every person, firm or corporation who engages in the sale of bever-
 ages in beverage containers to a consumer for off  premises  consumption
 in this state; OR
   B.  EVERY  PERSON, FIRM OR CORPORATION LICENSED UNDER THE LAWS OF THIS
 STATE TO ENGAGE IN THE SALE OF CANNABIS TO AN  ADULT  FOR  USE  IN  THIS
 STATE.
   5-a. A "deposit initiator" for each beverage OR CANNABIS container for
 which  a refund value is established under section 27-1005 of this title
 means:
   a. the bottler of the beverage in such container, OR THE  PACKAGER  OF
 CANNABIS IN SUCH CONTAINER;
   b. the distributor of such container if such distributor's purchase of
 such container was not, directly or indirectly, from a registered depos-
 it initiator;
   c.  a  dealer  of  such  container  who  sells or offers for sale such
 container in this state, whose  purchase  of  such  container  was  not,
 directly or indirectly, from a registered deposit initiator; or
   d. an agent acting on behalf of a registered deposit initiator.
   6. "Distributor" means:
   A.  any person, firm or corporation which engages in the sale or offer
 for sale of beverages in beverage containers to a dealer; OR
   B. ANY PERSON, FIRM OR CORPORATION LICENSED UNDER  THE  LAWS  OF  THIS
 STATE  TO  ENGAGE  IN  THE WHOLESALE SALE OF CANNABIS TO DEALERS IN THIS
 STATE.
   7. "Place of business" means the location at which a dealer  sells  or
 offers for sale beverages in beverage containers OR CANNABIS IN CANNABIS
 CONTAINERS to consumers.
   8. "Redeemer" means every person who demands the refund value provided
 for herein in exchange for the empty beverage OR CANNABIS container, but
 shall  not  include  a  dealer  as  defined  in subdivision four of this
 section.
   9. "Redemption center" means any person offering  to  pay  the  refund
 value  of  an empty beverage OR CANNABIS container to a redeemer, or any
 person who contracts  with  one  or  more  dealers  or  distributors  to
 collect,  sort  and  obtain  the  refund value and handling fee of empty
 beverage OR CANNABIS containers for, or on behalf  of,  such  dealer  or
 distributor under the provisions of section 27-1013 of this title.
   10.  "Use  or  consumption"  means  the exercise of any right or power
 incident to the ownership of a beverage OR CANNABIS, other than the sale
 or the keeping or retention of a beverage OR CANNABIS for the purpose of
 sale.
   14. "CANNABIS" MEANS ALL PARTS OF THE PLANT  OF  THE  GENUS  CANNABIS,
 WHICH  HAS  BEEN  AUTHORIZED  FOR DISTRIBUTION AND SALE FOR ADULT-USE IN
 THIS STATE.
 A. 3934                             3
 
   15. "CANNABIS CONTAINER" MEANS  THE  SEALED  GLASS,  METAL,  ALUMINUM,
 STEEL  OR  PLASTIC  BOTTLE,  CAN  OR  JAR  USED  FOR CONTAINING CANNABIS
 INTENDED FOR ADULT-USE IN THIS STATE.
   §  3.  Section 27-1005 of the environmental conservation law, as added
 by section 4 of part SS of chapter 59 of the laws of 2009, is amended to
 read as follows:
 § 27-1005. Refund value.
   No person shall sell or offer for sale a beverage OR CANNABIS contain-
 er in this state  unless  the  deposit  on  such  beverage  OR  CANNABIS
 container is or has been collected by a registered deposit initiator and
 unless  such  container  has  a refund value of not less than five cents
 which is clearly indicated thereon as provided  in  section  27-1010  OR
 27-1011 of this title.
   §  4.  Section 27-1007 of the environmental conservation law, as added
 by section 4 of part SS of chapter 59 of the laws of 2009, paragraph (b)
 of subdivision 1 as amended by chapter 459 of  the  laws  of  2011,  and
 subdivision 12 as added by section 3 of part F of chapter 58 of the laws
 of 2013, is amended to read as follows:
 § 27-1007. Mandatory acceptance.
   Except as provided in section 27-1009 of this title:
   1.  (a)  A  dealer shall accept at his or her place of business from a
 redeemer any empty beverage OR CANNABIS containers of the design, shape,
 size, color, composition and brand sold or offered for sale by the deal-
 er, and shall pay to the redeemer the refund value of each such beverage
 OR CANNABIS container as established in section 27-1005 of  this  title.
 Redemptions  of  refund  value  must  be  in legal tender, or a scrip or
 receipt from a reverse vending  machine,  provided  that  the  scrip  or
 receipt  can be exchanged for legal tender for a period of not less than
 sixty days without requiring the purchase of other  goods.  The  use  or
 presence  of a reverse vending machine shall not relieve a dealer of any
 obligations imposed pursuant to this section. If  a  dealer  utilizes  a
 reverse  vending  machine to redeem containers, the dealer shall provide
 redemption of beverage OR CANNABIS containers when the  reverse  vending
 machine  is  full,  broken,  under  repair  or does not accept a type of
 beverage OR CANNABIS container sold or offered for sale by  such  dealer
 and  may not limit the hours or days of redemption except as provided by
 subdivision three of this section.
   (b) Beginning March first, two thousand ten, a dealer UNDER  PARAGRAPH
 A  OF  SUBDIVISION  FOUR OF SECTION 27-1003 OF THIS TITLE whose place of
 business is part of a chain engaged in the same general field  of  busi-
 ness  which operates ten or more units in this state under common owner-
 ship and whose business has at least: (i) forty thousand but  less  than
 sixty  thousand  square  feet  devoted to the display of merchandise for
 sale to the public shall install and maintain at least two reverse vend-
 ing machines at the dealer's place of business  FOR  THE  COLLECTION  OF
 BEVERAGE CONTAINERS; (ii) sixty thousand but less than eighty-five thou-
 sand  square  feet devoted to the display of merchandise for sale to the
 public shall  install  and  maintain  at  least  three  reverse  vending
 machines FOR THE COLLECTION OF BEVERAGE CONTAINERS at the dealer's place
 of  business;  or  (iii) eighty-five thousand square feet devoted to the
 display of merchandise for sale to the public shall install and maintain
 at least four reverse vending machines FOR THE  COLLECTION  OF  BEVERAGE
 CONTAINERS  at the dealer's place of business. The requirements of para-
 graph (b) of this subdivision to install and  maintain  reverse  vending
 machines  shall  not  apply  to  a  dealer that: (i) sells only beverage
 containers of twenty ounces or less where such beverage  containers  are
 A. 3934                             4
 
 packaged  in  quantities  fewer than six; (ii) sells beverage containers
 and devotes no more than five percent of its floor space to the  display
 and  sale  of  consumer  commodities,  as defined in section two hundred
 fourteen-h  of  the  agriculture  and  markets law; [or] (iii) obtains a
 waiver from the commissioner authorizing dealers  to  provide  consumers
 with  an alternative technology that: (A) determines if the container is
 redeemable, (B) provides protections against fraud through a system that
 validates each container redeemed by reading the universal product  code
 and, except with respect to refillable containers, renders the container
 unredeemable, (C) accumulates information regarding containers redeemed,
 and (D) issues legal tender, or a scrip, receipt, or other form of cred-
 it  for  the  refund value, that can be exchanged for legal tender for a
 period of not less than sixty days without  requiring  the  purchase  of
 other  goods;  OR (IV) IS A DEALER UNDER PARAGRAPH B OF SUBDIVISION FOUR
 OF SECTION 27-1003 OF THIS TITLE. Notwithstanding the foregoing, if  the
 alternative  technology  does  not allow consumers to immediately obtain
 the refund value of the redeemed container, a dealer shall be  permitted
 to deploy such alternative technology only if it also offers an alterna-
 tive  that  allows consumers to conveniently and immediately obtain such
 refund value through a reverse  vending  machine  or  other  alternative
 method.
   (c) A dealer to which paragraph (b) of this subdivision does not apply
 and whose place of business is at least forty thousand square feet which
 does  not  utilize reverse vending machines to process empty beverage OR
 CANNABIS containers for redemption shall: (i) establish and  maintain  a
 dedicated  area  within  such  business  to  accept beverage OR CANNABIS
 containers for redemption; (ii) adequately staff such area to facilitate
 efficient acceptance and processing of such containers  during  business
 hours;  and  (iii)  post one or more conspicuous signs conforming to the
 size and color requirements described in subdivision two of this section
 at each public entrance to the business which  describes  where  in  the
 business  the redemption area is located. The commissioner may establish
 in rules and regulations additional standards for the efficient process-
 ing of beverage AND CANNABIS containers by such dealers.
   (d) For the purposes of this subdivision on any day that a  dealer  is
 open  for less than twenty-four hours, the dealer may restrict or refuse
 the payment of refund values during the first and last hour  the  dealer
 is open for business.
   2.  A.  A  dealer  UNDER  PARAGRAPH  A  OF SUBDIVISION FOUR OF SECTION
 27-1003 OF THIS TITLE shall post a conspicuous sign,  at  the  point  of
 sale, that states:
                      "NEW YORK BOTTLE BILL OF RIGHTS
 
  STATE LAW REQUIRES US TO REDEEM EMPTY RETURNABLE BEVERAGE CONTAINERS OF
          THE SAME TYPE AND BRAND THAT WE SELL OR OFFER FOR SALE
 
 YOU  HAVE  CERTAIN  RIGHTS UNDER THE NEW YORK STATE RETURNABLE CONTAINER
 ACT:
   THE RIGHT to return your empties for refund to any  dealer  who  sells
 the  same brand, type and size, whether you bought the beverage from the
 dealer or not. It is illegal to return containers for  refund  that  you
 did not pay a deposit on in New York state.
   THE  RIGHT  to  get  your  deposit  refund  in  cash, without proof of
 purchase.
 A. 3934                             5
 
   THE RIGHT to return your empties any day, any  hour,  except  for  the
 first  and  last hour of the dealer's business day (empty containers may
 be redeemed at any time in 24-hour stores).
   THE  RIGHT  to  return  your  containers if they are empty and intact.
 Washing containers is not required by law, but is  strongly  recommended
 to maintain sanitary conditions.
   The New York state returnable container act can be enforced by the New
 York  state department of environmental conservation, the New York state
 department of agriculture and markets, the New York state department  of
 taxation and finance, the New York state attorney general and/or by your
 local government."
   Such  sign must be no less than eight inches by ten inches in size and
 have lettering a minimum of one quarter inch high, and of a color  which
 contrasts with the background. The department shall maintain a toll free
 telephone number for a "bottle bill complaint line" that shall be avail-
 able from 9:00 a.m. to 5:00 p.m. each business day to receive reports of
 violations  of  this  title. The telephone number shall be listed on any
 sign required by this section.
   B. A DEALER UNDER PARAGRAPH B OF SUBDIVISION FOUR OF  SECTION  27-1003
 OF  THIS TITLE SHALL POST A CONSPICUOUS SIGN, AT THE POINT OF SALE, THAT
 STATES:
 
                "NEW YORK CANNABIS CONTAINER BILL OF RIGHTS
 
  STATE LAW REQUIRES US TO REDEEM EMPTY RETURNABLE CANNABIS CONTAINERS OF
          THE SAME TYPE AND BRAND THAT WE SELL OR OFFER FOR SALE
 
 YOU HAVE CERTAIN RIGHTS UNDER THE NEW YORK  STATE  RETURNABLE  CONTAINER
 ACT:
   THE  RIGHT  TO  RETURN YOUR EMPTIES FOR REFUND TO ANY DEALER WHO SELLS
 THE SAME BRAND, TYPE AND SIZE, WHETHER YOU BOUGHT THE CANNABIS FROM  THE
 DEALER  OR  NOT.  IT IS ILLEGAL TO RETURN CONTAINERS FOR REFUND THAT YOU
 DID NOT PAY A DEPOSIT ON IN NEW YORK STATE.
   THE RIGHT TO GET  YOUR  DEPOSIT  REFUND  IN  CASH,  WITHOUT  PROOF  OF
 PURCHASE.
   THE  RIGHT  TO  RETURN  YOUR EMPTIES ANY DAY, ANY HOUR, EXCEPT FOR THE
 FIRST AND LAST HOUR OF THE DEALER'S BUSINESS DAY (EMPTY  CONTAINERS  MAY
 BE REDEEMED AT ANY TIME IN 24-HOUR STORES).
   THE  RIGHT  TO  RETURN  YOUR  CONTAINERS IF THEY ARE EMPTY AND INTACT.
 WASHING CONTAINERS IS NOT REQUIRED BY LAW, BUT IS  STRONGLY  RECOMMENDED
 TO MAINTAIN SANITARY CONDITIONS.
   THE NEW YORK STATE RETURNABLE CONTAINER ACT CAN BE ENFORCED BY THE NEW
 YORK  STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, THE NEW YORK STATE
 DEPARTMENT OF AGRICULTURE AND MARKETS, THE NEW YORK STATE DEPARTMENT  OF
 TAXATION AND FINANCE, THE NEW YORK STATE ATTORNEY GENERAL AND/OR BY YOUR
 LOCAL GOVERNMENT."
   SUCH  SIGN MUST BE NO LESS THAN EIGHT INCHES BY TEN INCHES IN SIZE AND
 HAVE LETTERING A MINIMUM OF ONE QUARTER INCH HIGH, AND OF A COLOR  WHICH
 CONTRASTS WITH THE BACKGROUND. THE DEPARTMENT SHALL MAINTAIN A TOLL FREE
 TELEPHONE  NUMBER  FOR A "CANNABIS CONTAINER RETURN COMPLAINT LINE" THAT
 SHALL BE AVAILABLE FROM 9:00 A.M. TO 5:00  P.M.  EACH  BUSINESS  DAY  TO
 RECEIVE  REPORTS OF VIOLATIONS OF THIS TITLE. THE TELEPHONE NUMBER SHALL
 BE LISTED ON ANY SIGN REQUIRED BY THIS SECTION.
   3. On or after June first, two thousand nine, a dealer may  limit  the
 number  of  empty  beverage  OR  CANNABIS  containers to be accepted for
 A. 3934                             6
 
 redemption at the dealer's place of business to no less than seventy-two
 containers per visit, per redeemer, per day, provided that:
   (a) The dealer has a written agreement with a redemption center, be it
 either  at  a  fixed physical location within the same county and within
 one-half mile of the dealer's place of business, or a mobile  redemption
 center,  operated  by  a  redemption center, that is located within one-
 quarter mile of the dealer's place of business.  The  redemption  center
 must  have  a  written agreement with the dealer to accept containers on
 behalf of the dealer; and the redemption  center's  hours  of  operation
 must  cover at least 9:00 a.m. through 7:00 p.m. daily or in the case of
 a mobile redemption center, the hours of operation must cover  at  least
 four consecutive hours between 8:00 a.m. and 8:00 p.m.  daily. The deal-
 er  must  post a conspicuous, permanent sign, meeting the size and color
 specifications set forth in subdivision two of  this  section,  open  to
 public  view,  identifying  the  location  and hours of operation of the
 affiliated redemption center or mobile redemption center; and
   (b) The dealer provides, at a minimum, a consecutive two  hour  period
 between  7:00 a.m. and 7:00 p.m. daily whereby the dealer will accept up
 to two hundred forty containers, per redeemer,  per  day,  and  posts  a
 conspicuous,  permanent  sign, meeting the size and color specifications
 set forth in subdivision two of this section, open to public view, iden-
 tifying those hours. The dealer may not change the hours  of  redemption
 without first posting a thirty day notice; and
   (c) The dealer's primary business is:
   (I)  the  sale  of food or beverages for consumption off-premises, and
 the dealer's place of business is less than ten thousand square feet  in
 size; OR
   (II) THE SALE OF CANNABIS TO ADULTS FOR USE IN THIS STATE, AS LICENSED
 OR OTHERWISE AUTHORIZED TO DO SO  UNDER THE LAWS OF THIS STATE.
   4.  A  deposit  initiator  shall accept from a dealer or operator of a
 redemption center any  empty  beverage  OR  CANNABIS  container  of  the
 design,  shape,  size,  color, composition and brand sold or offered for
 sale by the deposit initiator, and shall pay the dealer or operator of a
 redemption center the refund value of each  such  beverage  OR  CANNABIS
 container  as  established  by  section 27-1005 of this title. A deposit
 initiator shall accept and redeem all such empty  beverage  OR  CANNABIS
 containers  from  a  dealer  or  redemption center without limitation on
 quantity.
   5. A deposit initiator's or distributor's failure  to  pick  up  empty
 beverage  OR  CANNABIS  containers,  including containers processed in a
 reverse vending machine, from a redemption center, dealer or the  opera-
 tor of a reverse vending machine, shall be a violation of this title.
   6. In addition to the refund value of a beverage OR CANNABIS container
 as  established  by  section  27-1005 of this title, a deposit initiator
 shall pay to any dealer or operator of a redemption  center  a  handling
 fee  of three and one-half cents for each beverage OR CANNABIS container
 accepted by the deposit initiator from such  dealer  or  operator  of  a
 redemption center.  Payment of the handling fee shall be as compensation
 for  collecting,  sorting  and  packaging  of empty beverage OR CANNABIS
 containers for transport back to the deposit initiator or its  designee.
 Payment  of  the  handling fee may not be conditioned on the purchase of
 any goods or services, nor may such payment be made out  of  the  refund
 value  account  established pursuant to section 27-1012 of this title. A
 distributor who does not initiate deposits on  a  type  of  beverage  OR
 CANNABIS  container  is  considered  a  dealer  only  for the purpose of
 receiving a handling fee from a deposit initiator.
 A. 3934                             7
 
   7. A deposit initiator on a brand shall accept from a distributor  who
 does  not initiate deposits on that brand any empty beverage OR CANNABIS
 containers of that brand accepted by the distributor from  a  dealer  or
 operator  of a redemption center and shall reimburse the distributor the
 refund value of each such beverage OR CANNABIS container, as established
 by  section  27-1005  of  this title. In addition, the deposit initiator
 shall reimburse such distributor for  each  such  beverage  OR  CANNABIS
 container  the  handling  fee  established under subdivision six of this
 section. Without limiting the rights of the department  or  any  person,
 firm  or  corporation  under  this subdivision or any other provision of
 this section, a distributor shall  have  a  civil  right  of  action  to
 enforce  this  subdivision, including, upon three days notice, the right
 to apply for temporary and preliminary injunctive relief against contin-
 uing violations, and until arrangements for  collection  and  return  of
 empty  containers or reimbursement of such distributor for such deposits
 and handling fees are made.
   8. It shall be the responsibility of the deposit initiator or distrib-
 utor to provide to a dealer or redemption center a sufficient number  of
 bags, cartons, or other suitable containers, at no cost, for the packag-
 ing,  handling  and pickup of empty beverage OR CANNABIS containers that
 are not redeemed through a reverse vending machine. The  bags,  cartons,
 or  containers  must be provided by the deposit initiator or distributor
 on a schedule that allows the dealer  or  redemption  center  sufficient
 time  to sort the empty beverage OR CANNABIS containers prior to pick up
 by the deposit initiator or distributor. In addition:
   (a) When picking up empty beverage OR CANNABIS containers,  a  deposit
 initiator or distributor shall not require a dealer or redemption center
 to  load  their own bags, cartons or containers onto or into the deposit
 initiator's or distributor's vehicle or vehicles or provide the staff or
 equipment needed to do so.
   (b) A  deposit  initiator  or  distributor  shall  not  require  empty
 containers  to be counted at a location other than the redemption center
 or dealer's place of business. The dealer  or  redemption  center  shall
 have the right to be present at the count.
   (c) A deposit initiator or distributor shall pick up empty beverage OR
 CANNABIS  containers  from the dealer or redemption center at reasonable
 times and intervals as determined in rules or regulations promulgated by
 the department.
   9. No person shall return or assist another to return to a  dealer  or
 redemption center an empty beverage OR CANNABIS container for its refund
 value if such container had previously been accepted for redemption by a
 dealer,  redemption  center, or deposit initiator who initiates deposits
 on beverage OR CANNABIS containers of the same brand.
   10. A redeemer, dealer, distributor or  redemption  center  shall  not
 knowingly  redeem  an  empty  beverage  OR CANNABIS container on which a
 deposit was never paid in New York state.
   11. Notwithstanding the  provisions  of  subdivision  two  of  section
 27-1009  of  this title, a deposit initiator or distributor shall accept
 and redeem beverage OR CANNABIS containers as provided in this title, if
 the dealer or operator of a redemption center shall  have  accepted  and
 paid the refund value of such beverage OR CANNABIS containers.
   12. No person shall intentionally program, tamper with, render inaccu-
 rate, or circumvent the proper operation of a reverse vending machine to
 wrongfully  elicit  deposit monies when no valid, redeemable beverage OR
 CANNABIS container has been placed in  and  properly  processed  by  the
 reverse vending machine.
 A. 3934                             8
 
   § 5. Section 27-1009 of the environmental conservation law, as amended
 by  section 4 of part F of chapter 58 of the laws of 2013, is amended to
 read as follows:
 § 27-1009. Refusal of acceptance.
   1.  A  dealer  or operator of a redemption center may refuse to accept
 from a redeemer, and a deposit initiator or distributor  may  refuse  to
 accept from a dealer or operator of a redemption center any empty bever-
 age OR CANNABIS container which does not state thereon a refund value as
 established  by  section  27-1005  and  provided  by  [section] SECTIONS
 27-1010 AND 27-1011 of this title.
   2. A dealer or operator of a redemption  center  may  also  refuse  to
 accept any broken bottle, corroded, crushed or dismembered container, or
 any  beverage  OR CANNABIS container which contains a significant amount
 of foreign material, as  determined  in  rules  and  regulations  to  be
 promulgated by the commissioner.
   §  6.  The  environmental  conservation law is amended by adding a new
 section 27-1010 to read as follows:
   § 27-1010. CANNABIS CONTAINER REQUIREMENTS.
   1. A. EVERY CANNABIS CONTAINER SOLD OR OFFERED FOR SALE IN THIS  STATE
 SHALL CLEARLY INDICATE BY PERMANENTLY MARKING OR EMBOSSING THE CONTAINER
 OR  BY  PRINTING  AS  PART  OF THE PRODUCT LABEL THE REFUND VALUE OF THE
 CONTAINER AND THE WORDS "NEW YORK" OR THE LETTERS "NY".
   B. SUCH EMBOSSING OR PERMANENT IMPRINTING ON  THE  CANNABIS  CONTAINER
 SHALL  BE  THE  RESPONSIBILITY  OF THE PERSON, FIRM OR CORPORATION WHICH
 PACKAGES A CANNABIS CONTAINER OR  A  BRAND  OWNER  FOR  WHOSE  EXCLUSIVE
 ACCOUNT PRIVATE LABEL CANNABIS IS PACKAGED.
   2. NO DEPOSIT INITIATOR, DISTRIBUTOR OR DEALER SHALL SELL OR OFFER FOR
 SALE,  AT WHOLESALE OR RETAIL IN THIS STATE, ANY CANNABIS CONTAINER THAT
 DOES NOT CONSIST OF AT LEAST FIFTY PERCENT RECYCLED MATERIALS.
   § 7. Subdivisions 1, 8, 9 and 12 of section 27-1012  of  the  environ-
 mental  conservation  law, subdivisions 1, 8 and 9 as added by section 8
 of part SS of chapter 59 of the laws of 2009, and paragraph b of  subdi-
 vision 9 and subdivision 12 as amended by section 6 of part F of chapter
 58 of the laws of 2013, are amended to read as follows:
   1.  Each  deposit initiator shall deposit in a refund value account an
 amount equal to the refund value initiated under section 27-1005 of this
 title which is received  with  respect  to  each  beverage  OR  CANNABIS
 container  sold  by such deposit initiator. Such deposit initiator shall
 hold the amounts in the refund value account in trust for the  state.  A
 refund value account shall be an interest-bearing account established in
 a  banking  institution located in this state, the deposits in which are
 insured by an agency of the federal government. Deposits of such amounts
 into the refund value account shall be made  not  less  frequently  than
 every  five business days. All interest, dividends and returns earned on
 the refund value account shall be paid directly into said  account.  The
 monies  in such accounts shall be kept separate and apart from all other
 monies in the possession of the deposit initiator. The  commissioner  of
 taxation  and finance may specify a system of accounts and records to be
 maintained with respect to accounts established under this subdivision.
   8. The commissioner of taxation and finance may  require  the  mainte-
 nance  of  such  accounts,  records or documents relating to the sale of
 beverage OR CANNABIS containers,  by  any  deposit  initiator,  bottler,
 CANNABIS  PACKAGER,  distributor,  dealer  or  redemption center as such
 commissioner  may  deem  appropriate  for  the  administration  of  this
 section.  Such commissioner may make examinations, including the conduct
 of facility inspections during regular business hours, with  respect  to
 A. 3934                             9
 
 the  accounts, records or documents required to be maintained under this
 subdivision. Such accounts, records and documents shall be preserved for
 a period of three years, except that such commissioner  may  consent  to
 their  destruction  within  that period or may require that they be kept
 longer. Such accounts, records and documents  may  be  kept  within  the
 meaning of this subdivision when reproduced by any photographic, photos-
 tatic,  microfilm,  micro-card,  miniature photographic or other process
 which actually reproduces the original accounts, records or documents.
   9. a. Any person required to be registered  under  this  section  who,
 without being so registered, sells or offers for sale beverage OR CANNA-
 BIS  containers  in this state, in addition to any other penalty imposed
 by this title, shall be subject to a  penalty  to  be  assessed  by  the
 commissioner  of  taxation  and  finance in an amount not to exceed five
 hundred dollars for the first day on which such sales or offers for sale
 are made, plus an amount not to exceed five  hundred  dollars  for  each
 subsequent  day  on which such sales or offers for sale are made, not to
 exceed twenty-five thousand dollars in the aggregate.
   b. Any deposit initiator who fails to  file  reports,  make  quarterly
 payments  or  maintain  accounts  or  records  pursuant to this section,
 unless it is shown that such failure was due to reasonable cause and not
 due to negligence or willful neglect, in addition to any  other  penalty
 imposed  by  this title, shall be subject to a penalty to be assessed by
 the commissioner of taxation and finance of not more than  one  thousand
 dollars  for  each  quarter  during  which such failure occurred, and an
 additional penalty of not more than one thousand dollars for each  quar-
 ter such failure continues.
   12. a. Each deposit initiator shall provide a report to the department
 describing  all the types of beverage OR CANNABIS containers on which it
 initiates deposits. The report shall include the product name,  type  of
 beverage IF APPLICABLE, size and composition of the beverage OR CANNABIS
 container, universal product code, and any other information the depart-
 ment  may  require. Upon request, a deposit initiator shall also provide
 to the department a copy of the container label  or  a  picture  of  any
 beverage OR CANNABIS container sold or offered for sale in this state on
 which  it  initiates  a deposit. Such information shall be provided in a
 form as prescribed by the department. The department  may  require  that
 such forms be filed electronically.
   b. A bottler may place on a beverage OR CANNABIS container a universal
 product  code or other distinctive marking that is specific to the state
 or used only in the state and any other states with  laws  substantially
 similar to this title as a means of preventing the sale or redemption of
 beverage OR CANNABIS containers on which no deposit was initiated.
   c.  A  bottler  or deposit initiator shall notify the department, in a
 form prescribed by the  department,  whenever  a  beverage  OR  CANNABIS
 container or beverage OR CANNABIS container label is revised by altering
 the  universal  product  code,  or  whenever  the  container  on which a
 universal product code appears is changed in size, composition or  glass
 color, or whenever the container or container label on which a universal
 product code appears is changed to include a universal product code that
 is  unique  to  the state or used only in the state and any other states
 with laws substantially similar to this title.
   § 8. Subdivisions 1, 3 and 4 of section 27-1013 of  the  environmental
 conservation  law,  subdivisions 1 and 3 as amended and subdivision 4 as
 added by section 7 of part F of chapter 58 of  the  laws  of  2013,  are
 amended to read as follows:
 A. 3934                            10
 
   1.  The commissioner is hereby empowered to promulgate rules and regu-
 lations governing (a) the circumstances  in  which  deposit  initiators,
 dealers  and distributors, individually or collectively, are required to
 accept the return of empty beverage OR  CANNABIS  containers,  including
 beverage  OR  CANNABIS  containers  processed  through  reverse  vending
 machines and make payment therefor; (b) the sorting  of  the  containers
 which  a  deposit  initiator  or  distributor may require of dealers and
 redemption centers; (c) the collection of returned beverage OR  CANNABIS
 containers by deposit initiators or distributors, including the party to
 whom  such  expense is to be charged, the frequency of such pick ups and
 the payment for refunds and handling fees  thereon;  (d)  the  right  of
 dealers  to  restrict  or  limit  the number of containers redeemed, the
 rules for redemption at the dealers' place of business, and the  redemp-
 tion  of containers from a beverage for which sales have been discontin-
 ued; (e) to issue registrations to persons, firms or corporations  which
 establish  redemption centers, subject to applicable provisions of local
 and state laws, at which redeemers and dealers may return empty beverage
 OR CANNABIS containers and receive payment of the refund value  of  such
 beverage  OR  CANNABIS containers. Such registrations shall be issued at
 no cost. Should the department require by regulations  adopted  pursuant
 to  this paragraph that redemption centers must obtain a registration as
 a condition of operation, any redemption center in business as of  March
 first,  two  thousand  thirteen  that previously provided the department
 with the notification information required by regulations in  effect  as
 of  such  date  may  continue to operate as if the department had issued
 such redemption center a registration required  by  regulations  adopted
 under  this  paragraph;  provided,  however, that such redemption center
 shall provide the department with  any  other  information  required  by
 regulations  adopted  pursuant  to this paragraph.   The department may,
 after due notice and opportunity of hearing, pursuant to the  provisions
 of  section  71-1709  of  this  chapter, deny an application or revoke a
 registration. In determining whether or not to revoke a registration the
 commissioner shall at a minimum, take into consideration the  compliance
 history  of  a violator, good faith efforts of a violator to comply, any
 economic benefit from noncompliance and whether the violation was proce-
 dural in nature. The commissioner's determination to revoke a  registra-
 tion is subject to review under article seventy-eight of the civil prac-
 tice  law  and rules; and (f) the operation of mobile redemption centers
 in order to ensure that to the best extent  practicable  containers  are
 not  proffered  for  redemption  to  a  deposit initiator or distributor
 outside of the  geographic  area  where  such  deposit  initiator  sells
 containers and initiates deposits.
   3.  No  dealer  or  distributor, as defined in section 27-1003 of this
 title, shall be required to obtain a  permit  to  operate  a  redemption
 center  at  the  same location as the dealer's or distributor's place of
 business. Operators of such redemption centers shall receive payment  of
 the  refund value of each beverage OR CANNABIS container from the appro-
 priate deposit  initiator  or  distributor  as  provided  under  section
 27-1007 of this title.
   4.  Each dealer and redemption center shall require any person tender-
 ing for redemption more than two thousand five hundred containers at one
 time to such dealer or redemption center to provide such  person's  name
 and  address  and the license plate of the vehicle used to transport the
 containers, or, in the case of an agent or employee of a  not-for-profit
 corporation, a sales tax exemption certificate. The dealer or redemption
 center  redeeming  the  beverage  OR  CANNABIS containers shall keep the
 A. 3934                            11
 
 information on file for a minimum of twelve months and provide  same  to
 the department upon request.
   §  9.  Subdivisions 3, 4 and 6 of section 27-1015 of the environmental
 conservation law, subdivisions 3 and 4 as amended and subdivision  6  as
 added  by  section  8  of  part F of chapter 58 of the laws of 2013, are
 amended to read as follows:
   3. It shall be unlawful for a distributor or deposit initiator, acting
 alone or aided by another, to return  any  empty  beverage  OR  CANNABIS
 container  to  a dealer or redemption center for its refund value if the
 distributor or deposit initiator had previously accepted  such  beverage
 OR CANNABIS container from any dealer or operator of a redemption center
 or  if  such  container  was  previously  accepted  by a reverse vending
 machine. A violation of this subdivision shall be a misdemeanor punisha-
 ble by a fine of not less than five hundred dollars nor  more  than  one
 thousand  dollars  and  an amount equal to two times the amount of money
 received as a result of such violation.
   4. Any person who willfully tenders to a dealer, distributor,  redemp-
 tion center or deposit initiator more than forty-eight empty beverage OR
 CANNABIS  containers  for  which  such person knows or should reasonably
 know that no deposit was paid in New York state may be assessed  by  the
 department  a  civil  penalty  of  up  to  one  hundred dollars for each
 container or up to twenty-five thousand dollars for each such tender  of
 containers.  At  each  location  where  a  person tenders containers for
 redemption, dealers and redemption centers must conspicuously display  a
 sign  in letters that are at least one inch in height with the following
 information: "WARNING:  Persons tendering for redemption  containers  on
 which  a  deposit was never paid in this state may be subject to a civil
 penalty of up to one hundred dollars per container or up to  twenty-five
 thousand  dollars for each such tender of containers." Any civil penalty
 may be assessed following a hearing or opportunity to be heard.
   6. (a) Any person who willfully violates or directs another to violate
 the requirements to collect  or  charge  the  refund  value  imposed  by
 section 27-1005 or paragraph a of subdivision nine of section 27-1012 of
 this  title  on five thousand or more beverage OR CANNABIS containers in
 one or more separate transactions within one year shall be guilty  of  a
 class B misdemeanor.
   (b)  Any  person,  having  previously been convicted of a violation of
 paragraph (a) of this section within the past three years, who willfully
 violates or directs another to violate the requirements  to  collect  or
 charge  the  refund  value  imposed by section 27-1005 or paragraph a of
 subdivision nine of section 27-1012 of this title on  five  thousand  or
 more  beverage  OR  CANNABIS  containers  in one or more separate trans-
 actions within one year shall be guilty of a class A misdemeanor.
   (c) Any person who willfully violates or directs  another  to  violate
 the  requirements  to  collect  or  charge  the  refund value imposed by
 section 27-1005 or paragraph a of subdivision nine of section 27-1012 of
 this title on twenty thousand or more beverage OR CANNABIS containers in
 one or more separate transactions within one year shall be guilty  of  a
 class E felony.
   Nothing in this subdivision shall apply to common or contract carriers
 or  warehousemen  while engaged in lawfully transporting or storing such
 containers as merchandise, nor to any employee of such carrier or  ware-
 houseman acting within the scope of his or her employment.
   §  10. Section 27-1016 of the environmental conservation law, as added
 by section 12 of part SS of chapter 59 of the laws of 2009,  is  amended
 to read as follows:
 A. 3934                            12
 
 § 27-1016. Public education.
   The commissioner shall establish a public education program to dissem-
 inate  information regarding implementation of this title. Such informa-
 tion shall include, but not be limited to, publication of the  New  York
 Bottle Bill of Rights AND THE NEW YORK CANNABIS CONTAINER BILL OF RIGHTS
 as specified in subdivision two of section 27-1007 of this title; publi-
 cation of information specifying the procedures necessary to establish a
 redemption  center as provided in section 27-1013 of this title, includ-
 ing information regarding financial assistance available for the  estab-
 lishment  of  redemption  centers as provided in section 27-1018 of this
 title; publication of information delineating the  relevant  rights  and
 responsibilities  of  deposit initiators, distributors, dealers, redemp-
 tion centers and redeemers under the provisions of this title;  publica-
 tion  of  information  regarding the requirement that deposit initiators
 register with the department of taxation and finance; and publication of
 information on the general benefits of recycling.
   § 11. Section 27-1018 of the environmental conservation law, as  added
 by  section  13 of part SS of chapter 59 of the laws of 2009, is amended
 to read as follows:
 § 27-1018. Beverage OR CANNABIS container assistance program.
   Notwithstanding any other provision of law to the contrary, within the
 limits of appropriations therefor, the  commissioner  shall  make  state
 assistance  payments  to  municipalities,  businesses and not-for-profit
 organizations located in the state  for  the  cost  of  reverse  vending
 machines  located  or  to be located in the state. Such state assistance
 payments shall not exceed fifty  percent  of  the  costs  of  equipment,
 and/or  the acquisition and/or rehabilitation of real property or struc-
 tures located or to be located in the state related to  the  collecting,
 sorting,  and packaging of empty beverage OR CANNABIS containers subject
 to the provisions of this title. Such payments may include costs related
 to the establishment of redemption centers, including mobile  redemption
 centers.  For  the purposes of this section, municipalities and not-for-
 profit organizations shall  have  the  meaning  as  defined  in  section
 54-0101  of this chapter and businesses shall mean a dealer, distributor
 or redemption center as defined in this title  that  employs  less  than
 fifty employees.
   §  12.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law. Effective immediately,  the  addition,
 amendment  and/or  repeal  of  any  rule or regulation necessary for the
 implementation of this act on its effective date are  authorized  to  be
 made and completed on or before such effective date.